PURPOSE: This rule establishes a uniform procedure for leasing excess property to other governmental and private entities.

1. (1) Definitions. As used in this rule 1 CSR 35-2.060—

   1. (A) “DFM” means the Office of Administration, Division of Facilities Management;
   2. (B) “Holding agency” means the governmental unit, which is the primary occupant of a facility that is controlled by the state of Missouri and contains excess property;
   3. (C) “Excess property” means that portion of a parcel of improved or unimproved real property controlled by the state of Missouri, which is temporarily vacant or is not fully utilized by the holding agency; and
   4. (D) “Lessee” means the state agency or private entity, which occupies excess property which it leases from the state of Missouri or from the holding agency.
2. (2) Inventory of Property. Each holding agency shall annually report its excess property to DFM, by updating its Land and Building System (LABS) report from the preceding year.
3. (3) Leases of Property to Other State Agencies. DFM shall collect information about excess property and distribute information about such property to other state agencies, and shall attempt to utilize such property to satisfy space requirements of the agencies before considering the acquisition of additional space.

4. (4) Leases of Property to Non-State Entities.

   1. (A) DFM may lease to non-state entities excess property, which cannot be effectively utilized by state agencies. DFM shall give preference in such leases to those organizations, which provide services that are related to the programs of a state agency.
   2. (B) Each holding agency shall retain daily control over space assigned to it, but shall not commit such property to a non-state organization without first obtaining written approval from the commissioner of administration.

5. (5) Miscellaneous Terms for Leases to State and Non-State Agencies.

   1. (A) The lessee shall pay rent for the use of excess property at its fair market value, as determined by the amount paid by state agencies for the rental of similar properties, unless the commissioner of administration determines that reducing or waiving the rental payments produces a clear benefit to the state.
   2. (B) Leases of excess property shall be awarded to the bidder who submits the highest and best bid in response to a publicly advertised solicitation for bids or through competitive proposals if the commissioner of administration determines that publicly advertised bidding is not practical or not advantageous or is not in the best interest of the state because of the holding agency’s need to provide space to an entity performing services closely related to and important to the holding agency’s mission.
   3. (C) DFM shall resolve any disputes between the holding agency and the lessee.
   4. (D) Other terms of the lease agreements shall be determined by DFM.
   5. (E) All agreements for the lease of statecontrolled real property shall be signed by both the commissioner of administration and the director of DFM or their designees. AUTHORITY: section 37.005, RSMo Supp. 1997.* Original rule filed April 15, 1998, effective Nov. 30, 1998. *Original authority 1973, amended 1983, 1986, 1987, 1991, 1996, 1997.